LATINtalk eJournal

LATINtalk eJournals assist automotive suppliers in succeeding in the Mexican and South American automotive industries.

April, 2017

USA New Government: Implications for the Mexican Automotive Industry
Despite Donald Trump's election, Mexico will not experience an immediate downturn due to the fact that his proposals will require at least 2 years to come to fruition. However, in the midterm, several risks may arise:To read and downloa (...) read on

NAFTA unlikely to hurt Mexico car production, says Renault-Nissan CEO
Renault-Nissan has no plans to move production out of Mexico despite speculation that the anticipated revision of the North American Free Trade Agreement (NAFTA) could slap tariffs on trade between the U.S. and Mexico.The carmaker's cha (...) read on

WardsAuto: More Sales Records Fall in Mexico in March
Car dealers in Mexico saw no letup in the flow of buyers through their doors in March as they retailed a record 136,755 new light vehicles.That was up 17.2% from the month's prior record of 116,724 chalked up a year earlier, and bested (...) read on

Autos/Trucks: Increasing Signs that Brazil Market Is Bottoming (report)
Brazil auto registrations declined 7% yoy in February and have declined 5% quarter-to-date. On the other hand, auto production is up 29% QTD (above our +20% estimate) as dealers begin restocking inventory levels. Truck production is tracking u (...) read on

Chinese automaker eyes plants in two Mexico states hit by Trump
Chinese automaker Great Wall Motor Co Ltd is considering building an auto plant in two Mexican states hit by U.S. President Donald Trump's drive to make American companies invest at home, sources said.Great Wall Motor, which describes i (...) read on

UK automotive: Mexico waving
Santander is supporting the UK automotive sector by mounting a new trade initiative to help UK manufacturers to access the Mexican automotive sector. Peter Osborne reports.Eleven of the world's top carmakers have facilities in Mexico, a (...) read on

Brazil to waive 30 percent IPI tax on Colombian autos: source
Brazil has agreed to allow imports of Colombian vehicles and car parts without a 30 percent industrial products tax (IPI) as part of a bilateral auto pact under negotiation during Mercosur trade talks with Latin America's Pacific coast countri (...) read on

Car Licensing in Brazil Grows by 38.86 Percent in March
In addition to the positive news in the new vehicle registration segment, the used vehicle segment has also shown strength.Passenger vehicle licensing in Brazil, grew by 38.86 percent in March of 2017 compared to February according to t (...) read on

Beyond Trump: the hidden threat robots pose to the Mexican economy
Automation endangers model based on low-wage jobs and export of goods made in duty-free zones.For three months now, a completely automated parking lot located on Reforma, one of Mexico City's main arteries, has been doing the kind of wo (...) read on

Brazil and Other Bright Spots in Latin America
I've just been on an extensive trip through Latin America, starting in Mexico and proceeding to Peru, Chile, Argentina and Brazil. Here, I offer a few highlights"including reasons for optimism.Trade Relations Top of Mind in Mexi (...) read on

Mexico: Let's get NAFTA done now
President Trump wants a new trade deal with Mexico.Mexico's message: Let's get it done soon before it's too late. "It will be in the best advantage of the countries involved that we finish this negotiation within the context (...) read on

US Wants Mexico, Canada to Form Powerhouse to Keep Supply Regional
President Donald Trump's top trade adviser is quietly working to forge an alliance with Mexico, even as U.S. plans to build a border wall and threats to withdraw from NAFTA continue to inflame tensions with its third-largest trading partner. (...) read on

Mexico prepared to 'step away' from NAFTA if negotiations don't benefit the country
Mexican Foreign Minister Luis Videgaray said that if North American Free Trade Agreement negotiations don't benefit all parties involved, the country is willing to "step away" from it. In an interview with Bloomberg, he said pulling out of N (...) read on

GDP in Brazil Registers Lowest Decline in 22 Months
FGV says despite negative GDP results there is overall perception that the economic crisis is beginning to dissipate.The Gross Domestic Product in Brazil fell by 0.3 percent in January compared to the same period last year, according to (...) read on

Cheap "Made in China" goods are now even cheaper to manufacture in Brazil
The average Chinese factory worker makes more than a Brazilian counterpart.On SÃ£o Paulo's hectic 25 de MarÃ§o street where you can find a good deal on just about anything, one shop features knock-off designer kid's clothes and shoe (...) read on

UK £1bn export credit for British companies planning to trade with Argentina
The British Government is re-introducing export credit financial support for UK businesses looking to trade with Argentina after an almost 20 year hiatus. The announcement was made in Buenos Aires as part of a visit to South America by Interna (...) read on

Massive stoppage in metropolitan Buenos Aires but with limited response in the rest of the country
Airlines in Argentina grounded international flights and riot police scuffled with protesters on Thursday as workers staged a general strike to protest job and pay cuts. Conservative President Mauricio Macri condemned the call to strike where (...) read on

Doing Business in Argentina 2017 - Guide
Doing Business in Argentina is a general guide for companies operating in or considerating investment into Argentina. It is intended to present an overview of the key aspects of the Argentine legal system and regulation of business activities (...) read on

Brazil Has 6th Highest Cargo Transport Risk Rate in World
Brazil jumped from 10th to 6th place in threat of cargo robberies in March, being only safer than war-torn countries like Syria, Libya and Southern Sudan.The latest survey by an UK company on the risks of cargo transportation in several (...) read on

Walmart to pay fine for making employees work during Brazil's World Cup game
Walmart will pay an entire day's work with an additional 100% bonus to each employee.Brazil's Superior Labor Court (TST) fined Walmart for not allowing its employees to watch the opening game of the 2014 World Cup. The American company (...) read on

Brazil denies plans to raise taxes on forex transactions to help meet fiscal target
Brazil's central bank and finance minister denied a report that the government could raise taxes on foreign exchange transactions to help reach this year's fiscal target. Bloomberg News had reported the move was "among the options being consid (...) read on

One Million New Seats on International Direct Flights to Mexico in 2017
The Mexico Tourism Board announced today that Mexico's global air connectivity continues to grow at a record pace, with airlines around the world adding new routes, additional flights on existing routes, and upgrading to the latest aircraft mo (...) read on

Study Reveals Brazilian Companies Excel Despite Crises
While business reputations have fallen across the world, certain Brazilian companies have managed to grow despite poor conditions.The Spanish consultancy Merco released a ranking of 100 brands around the world. Brazilian cosmetics Natur (...) read on

Taxation and Reinsurance in Brazil: Regulatory Update
COSIT CONSULTATION RESPONSE 62/2017The following are comments to the effects of COSIT Consultation Response No. 62, published on 20 January 2017, which the General Office to Coordinate Taxation ("COSIT") of the Brazilian Federal Reven (...) read on

Chinese investors move in, take large slice of Latin American pie
Chinese companies are forming the mainstay of foreign direct investment in Latin American and African markets as globalization suffers setbacks elsewhere, an international law firm has said.In an interview with China Daily, Juan PicÃ³ (...) read on

Financial Reporting Alert 17-2 -
Developments related to determining whether Argentina's economy should be considered highly inflationary
This Financial Reporting Alert highlights recent developments related to an entity's determination of whether Argentina's economy should be considered highly inflationary. An entity with operations in Argentina should be aware that these devel (...) read on

LatAm countries yearn for expansion of Asia-Pacific free-trade zone
The Latin American country of Chile is to hold a two-day meeting on Asia-Pacific economic integration starting on Tuesday, and has invited countries such as China, South Korea and Colombia to attend. In face of the United States withdra (...) read on

New transfer pricing requirements in Latin America under BEPS
Several countries in Latin America have established new transfer pricing documentation obligations associated with the OECD's Base Erosion and Profit Shifting (BEPS) initiative.In this new year, Mexico, Colombia and Peru have included i (...) read on